News & Analysis

US stocks dump and pump as strong data cools Fed-pivot hopes

6 October 2022 By Lachlan Meakin


US equities declined after a record two day winning streak, a volatile and choppy session ultimately ending with the S&P500 down 7.65 points (0.2%)

The Nasdaq (NDX100)  saw the biggest swing, from down almost 2.5% at the European close, all the way back up to +0.5% until a very late session sell-off saw it finish down 0.25%

The choppiness reflected the see-sawing of narrative regarding a Fed pivot, or being less aggressive in their rate hiking cycle, this narrative is changing from news release to news release, with weak figures seeing the Fed pivot narrative on, strong figures seeing it off. With robust employment data and PMI figures out of the US before Wednesdays session, the Fed pivot narrative moved towards the off side causing the whipsawing we saw in risk assets.


In FX, the Pound’s 6 day winning streak screeched to a halt, dropping 1% against the USD as traders piled back into the dollar on bets that the Federal Reserve will stick to hiking interest rates.

Oil prices rallied once again on the back of the OPEC+ production cut, a move that the Whitehouse has angrily called “short sighted” US Crude back (USOUSD) above $88 a barrel, another factor that will more than likely see inflation figures from the US remain sticky, giving the Federal Reserve more reason to stay the course of their rate hiking cycle.

Bitcoins (BTCUSD)  low volatility grind up continued, BTCUSD has shown a real de-coupling from tech and USD strength recently, making it’s own path and displaying strong support in the 19000-18000 zone.

Todays scheduled economic announcements:

Ready to start trading?

Disclaimer: Articles are from GO Markets analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by GO Markets. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.